My selection of SGX listed REITs - part 1

REIT	Period	DPU cts	Mkt	Yield	NAV	Gearing	Assets Type
AIMSAMPIReit	Q1 – Proforma Rights	0.52	$0.220	9.455%	$0.26	34.80%	Industrial
First REIT	FY11 – Rights	6.4	$0.750	8.533%	$0.76	17.25%	Hospitals + Hotel (Indonesia)
Cambridge	Q3 – Sep10	1.187	$0.535	8.802%	$0.58	39.20%	Industrial
Sabana REIT	FY11 – IPO	8.63	$0.980	8.806%	$0.99	26.50%	Industrial
LippoMapleT	Q3 – Sep10	1.09	$0.575	7.583%	$0.79	10.80%	Malls (Indonesia)
CACHE	Q3 – Sep10	1.94	$0.960	8.021%	$0.88	23.40%	Industrial
FraserComm	2H – Sep10	0.5549	$0.165	6.726%	$0.26	39.60%	Malls + Office (S’pore and Aust)
CapitaRChina	Q3 – Sep10	2.08	$1.240	6.653%	$1.06	33.70%	Malls (China)
SuntecReit	Q3 – Sep10	2.502	$1.530	6.488%	$1.80	32.90%	Malls + Office
MapletreeInd	FY11 (Mar)	3.1	$1.070	6.568%	$0.86	38.50%	Industrial
MapletreeLog	Q3 – Sep10	1.54	$0.955	6.450%	$0.86	39.90%	Industrial
Ascendasreit	Q2 – Sep10	3.3	$2.160	6.111%	$1.57	34.30%	Industrial
Starhill Gbl	Q3 – Sep10	1	$0.630	6.302%	$0.89	31.00%	Malls + Office
SaizenREIT	Q4 – Jun10	0.26	$0.165	6.303%	$0.40	36.90%	Residential (Japan)
AscottREIT	Q3 – Sep10	1.85	$1.240	5.968%	$1.22	32.20%	Serviced Apts (Regional)
FrasersCT	Q4 – Sep10	2.16	$1.530	5.647%	$1.29	30.30%	Malls
Fortune Reit HK$	Q3 – Sep10	5.76	$3.970	5.804%	$5.67	0.00%	Malls (HK)
PLife REIT	Q3 – Sep10	2.25	$1.700	5.294%	$1.36	35.00%	Hospitals
CapitaComm	Q3 – Sep10	1.99	$1.520	5.197%	$1.40	31.50%	Office
CDL Htrust	Q3 – Sep10	2.54	$2.050	4.917%	$1.46	21.10%	Hotels
CapitaMall	Q3 – Sep10	2.36	$1.990	4.704%	$1.50	37.20%	Malls + Office
K-REIT	Q3 – Sep10	1.69	$1.430	4.685%	$1.45	15.10%	Office

I am going to pick a good REITs for long-term hold as a income generator. like to do a detail study of all SGX listed REITs base on 7th Jan market closing pricing. After screen through with the first 3 criterias now only left below REITs for further consideration.


Industrial REITs: AIMSAMPIReit, Cambridge, Sabana REIT
Industrial REITs offer limited capital gains when compared to other types of REITs as there’s minimal scope for asset enhancement and relative ease of building new industry properties.

Factory space does not have good fundamentals in Singapore as compared to business parks and warehouses. This is because several companies have relocated to cheaper locations to increase profits.
Before investing in industrial REITs, investors should recognize why these REITs are trading at higher yields and take extra caution to investigate the assets owned by these REITs.

Mall REITs: LippoMapleT
Retail malls require a large amount of space so their supply is limited by the government. Malls are built only if the area has the ability to attract shoppers. Retail assets also lend themselves well to asset enhancement. This leads to continual growth in net asset value (NAV) of the REIT and capital growth without the need for acquisitions which involve heavy financing. Capital growth for malls has also been strong over the years.

Long-term fundamental drivers like population growth, increased tourism and rising wages also bode well for malls in the future.Thus, due to these reasons, retail REITs tend to be excellent long-term investments.

Mall + Office REITs: FraserComm, SuntecReit, Starhill Gbl
The economics of office properties are somewhat inferior to that of retail malls. The commodity-like nature of office space makes over-supply a bigger problem than retail properties. Office properties are highly cyclical given the time it takes for new supply to come on-stream. Asset enhancement is also much less effective for office real estates than for malls.

Healthcare REITs: First REIT
These REITs are more susceptible to interest rate fluctuations than other type of REITs given their bond-like characteristics. Those investors willing to stomach a bit more risk, healthcare REITs are excellent defensive investments.

Residential REITs: SaizenREIT

In conclusion, currently I am not so keen on Industrial REITs as well as Residential REITs due to their lower possibility of capital appreciation and more sensitive to interest rate. I would like to pick my REITs amont FraserComm, SuntecReit, Starhill Gbl, and First REIT.